VF Corp.-owned Supreme had a rough year in 2023 with the retailer bringing in a total of $523.1 million in revenue, a decline from $561.5 million from the prior year, according to Business of Fashion. The company also fell short of an internal forecast of $600 million. Net income at the New York-based brand and retailer also declined with $64.8 million reported during the year ending in March 2023, versus $82.4 million the previous year.
During its full-year earnings call in May, VF Corp. announced news of an impairment charge of $313 million for Supreme, resulting from “uneven” sales in 2023 with “modest” grown planned for 2024.
Interim VF Corp. CEO Benno Dorer said the company plans to “increase global access to [Supreme] from today 20 percent of global consumers to 40 percent in three years.” Addressing the brand’s shortfalls, Dorer said plans for additional expansion in China were impeded by lockdowns in the region throughout 2022. Dorer went on to describe Japan as “our best market” and “growing strongly.”
First founded in 1994 by James Jebbia, Supreme was acquired by VF Corp. in November 2020 for $2.1 billion. While Jebbia still heads the company, designer Tremaine Emory was announced as creative director in February 2022.